Ratio trend matrix
- : December 4, 2019
- : Prashant Shah
- : Definedge Solutions
1) Go to Matrix -> Ratio Trend Matrix
2) Select Group name, denominator scrip name and number of bars.
You will get to see RS ratio pattern of the stock for each day over a period you have selected, and score of the scrip based on that.
Definedge Method of scoring:
Bullish continuation: Price has gone up with denominator (+2)
Bullish RS divergence: Denominator is weak but price has shown the strength (+2)
Sign of Strength: Price has fallen along with denominator but outperformed (+1)
Bearish continuation:Price has gone down with denominator (-2)
Bearish RS divergence: Denominator is strong but price has shown the weakness (-2)
Sign of Weakness: Price has fallen along with denominator but underperformed (+1)
Each day is scored based on abvoe calculation and total score is shown in the table, you can sort the score column to filter the stocks. This is a very interesting way of picking the stocks which are showing relative strength or weakness over last several bars.